More than K400 million in loans for 2017

More than K450 million in Concessional Loans will be sourced from development partners as part of the PNG Government’s expenditure in 2017.

The total Concessional Loans amount to K452.8 million or 3.4 per cent of the total 2017 expenditure projection of K13 billion according to the 2017 National Budgets Economic and Development Policies.

The amount falls under the Development Partner Assistance component of the budget, which is K1, 420.9 million (K1.4 billion).

The Asian Development Bank (ADB) provides the largest share of concessional loans to PNG with K214.1 million and is steered towards transport infrastructure.

Major investments in 2017 through the ADB Concessional Loans are the Multi-Tranche Financing Facility (MFF) arrangements which includes K72 million Highlands Region Road Improvement and Investment Program (HRRIIP), K25 million PNG Towns Electrification and Investment Program (TEIP) and K57.9 million to the Civil Aviation Development and Investment Program (CADIP).

In a recent interview with Loop PNG, ADB Country Manager, Mercelo Minc, said the organisation was happy with the level of implementation by the PNG Government and therefore would continue to support the Government in its development aspirations.

Five other development partners will also be providing loans to PNG which amount to K238.7 million.

Meanwhile, total Grants from Development Partners is estimated at KK968.1 million or 7.2 per cent of total expenditure, with the largest share coming from the Australian Department of Foreign Affairs And Trade (DFAT) with K721.1 million.

The PNG Government says given the reduced overall expenditure, assistance from development partners has become an important element in sectorial development agendas.

 

Table 1 - Loans, Grants and Government Counterpart funding (Kina, Millions)

Development Partner

GoPNG Counterpart

Grants

Loans

Total

EU

12.5

104.3

 

116.8

ADB

99.5

 

214.1

313.6

UN

8

29.1

 

37.1

WB

24.5

5.4

85.2

115.1

NZ

2.5

30.8

 

33.3

JICA

13

53.5

111.4

177.9

DFAT

10

727.1

 

737.1

EIB

2.5

 

14.2

16.7

PRC

42.5

 

15.9

58.4

USAID

 

18

 

18

Ceska

3

 

12

15

Grand Total

218

968.1

452.8

1, 638.9

Source: 2017 National Budget Economic and Development Policies (Department of National Planning and Monitoring)

 

 

 

 

 

 

 

 

 

 

 

Author: 
Cedric Patjole